Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I would like to take this opportunity to extend my gratitude towards your continued understanding and your interest in our management and business activities. Please look at page one. These are the topics that I will cover today. I would like to begin with an overview of business results for the fiscal year ended March 2021. Please turn to page three. Revenue for the fiscal year ended March 2021 decreased 9.9% to JPY 1,883.6 billion compared with the previous fiscal year. Core operating income declined 28.1% to JPY 90.3 billion. Net income declined 45.6% to JPY 45.8 billion. As for annual dividend, the company anticipates to pay JPY 9 per share of common stock. ROE was 3.9%, while ROA was 3.2%. Page four is about special items.
Special items for the period under review worsened by JPY 23.6 billion to -JPY 34.4 billion compared with the previous fiscal year, mainly due to our U.S. carbon fiber-related subsidiary recording impairment losses. Page five is about assets, liabilities, equity, and free cash flow. As of end of March 2021, total assets stood at JPY 2,848.8 billion, up JPY 115.3 billion from the end of the previous fiscal year, mainly due to increases in current assets, property, plant, and equipment, and other financial assets. Total liabilities declined JPY 6.1 billion from the end of the previous fiscal year to JPY 1,526.6 billion, owing mainly to decrease in interest-bearing liabilities. Total equity came to JPY 1,322.3 billion, up JPY 121.4 billion from the end of the previous fiscal year. Owner's equity was JPY 1,237.9 billion, interest-bearing liabilities was JPY 973.9 billion, and D/E ratio was 0.79.
Free cash flow was JPY 113.7 billion. This graph on page six describes the factor analysis of JPY 35.3 billion decrease in core operating income for the fiscal year ended March 2021 on a year-to-year comparison. The difference in quantity was -JPY 74.4 billion due to a decrease in sales and production with the impact of COVID-19. The net exchanging price was +JPY 5.9 billion. This was due to the decline in raw material prices compared with the previous fiscal year. Cost variance, et cetera, was +JPY 33.9 billion as a result of efforts to reduce operating expenses, production fixed costs, and other expenses. The chart on page seven shows the revenue and core operating income results by segment. Using page eight and after, I would like to explain the results of each segment. First, fibers and textiles.
Revenue of the overall segment declined 13.4% to JPY 719.2 billion compared with the previous fiscal year, core operating income fell 38.6% to JPY 36.6 billion . The net exchanging price was positive, reflecting the decline in raw materials prices, and the company has been working on cost reduction. Difference in quantity was significantly negative due to the impact of the stagnation of production activities and consumption behavior caused by the COVID-19 in Japan and overseas. In apparel applications, demand declined due to lockdown and excessive channel inventory in various countries. In industrial applications, general purpose materials remained weak and sales volume declined. Demand for nonwoven fabrics increased for the applications of medical gowns and masks, and there have been signs of recovery in the automotive applications from the third quarter. These factors fell short of offsetting the decline in the overall sales volume in the segment.
Page nine is the Performance Chemical segment. Revenue declined 5.4% to JPY 720.4 billion compared with the previous fiscal year. Core operating income rose 22.8% to JPY 67.0 billion. Difference in quantity turned positive due to the recovery of the Chinese economy from the third quarter and signs of recovery in demand for automotive applications and electronic components applications. Meanwhile, cost variance, et cetera, was positive because of the cost reduction efforts, and the net exchanging price was also positive, reflecting the decline in raw materials prices. Among domestic affiliated companies in the segment, Chori recorded an allowance for doubtful accounts. Impact of this allowance is reflected in the results. I would like to explain the conditions of each business on the next page.
The resins business was affected by the stagnation in production activities caused by the COVID-19, but demand has been strong since the third quarter with automobile manufacturers operating and the recovery of the Chinese economy. The chemicals business was affected by the deteriorating market conditions in the first half of the fiscal year, but saw a recovery trend in the basic chemicals market from the third quarter. In the films business, battery separator films for lithium-ion secondary batteries were affected by lower market prices, while polyester films for optical applications and electronic components performed strongly. In the electronic and information materials business, demand for OLED-related materials increased. Page 11 is the carbon fiber composite materials segment. Revenue declined 22.8% to JPY 182.9 billion compared with the previous fiscal year, and posted core operating loss of JPY 7.5 billion, a decline of JPY 30.1 billion from a year earlier.
Sales of wind turbine blades in the industrial applications remained strong, and Toray Group worked toward drastic cost reductions. While aerospace applications were affected by the decline in the production rate of commercial aircraft. I would like to explain the status of each application on the next page. Aerospace applications were affected by the decline in the production rate at major customers due to the impact of COVID-19, as well as shutdown of plants. Although sports applications were affected by COVID-19, demand for bicycles, fishing rods, and golf shaft applications for outdoor leisure showed a recovery trend from the third quarter. In terms of regular tow products among the industrial applications, demand for environment and energy-related fields led by compressed natural gas tank applications and the automotive applications for luxury cars in Europe were weak due to the impact of COVID-19.
As for large tow products, shipment of wind turbine blade applications remained strong. As for composite business, shipments of materials of medical devices for the diagnosis of COVID-19 pneumonia remained strong. Page 13, Environment & Engineering segment. Revenue increased 1.4% to JPY 193.5 billion compared with the previous fiscal year, and core operating income rose 37.5% to JPY 14.5 billion. In the water treatment business, demand for reverse osmosis membranes and other products remained strong on the whole, despite shipment to some regions being affected by the COVID-19. In terms of environment and amenity business, demand for air filters, mainly for air purifier applications, was strong. Among domestic subsidiaries in the segment, an engineering subsidiary experienced decreases in the shipment of some electronics-related equipment. Meanwhile, a construction subsidiary posted profits from the completion of a real estate project. Page 14 is the Life Science segment.
Revenue remained at the same level compared with the previous fiscal year at JPY 53.0 billion, while core operating income rose by JPY 0.8 billion- JPY 1.3 billion. In the pharmaceutical business, sales of pruritus treatment REMITCH were influenced by the introduction of its generic versions, and there was an impact of a major NHI drug price revision in April 2020. In the medical devices business, shipment of dialyzers grew strongly in Japan and overseas, despite the impact of medical institutions postponing non-urgent operations due to the spread of the COVID-19. The company implemented cost reductions, including operating expenses. Page 15 shows the business results of major subsidiaries and regions. At our subsidiaries in Southeast Asia, the fibers and textiles business saw signs of recovery in the automotive applications from the third quarter. However, sales for apparel applications remained sluggish.
In the performance chemicals business, sales of ABS resins were strong due to a recovery in demand in the Chinese market, mainly for use in home appliances, as well as the improvement in the spread. As for subsidiaries in China, sales for nonwoven fabrics in the fibers and textiles business remained strong on the back of increased demand for masks due to the impact of COVID-19. Sales for apparel applications remained sluggish. As regards to subsidiaries in the Republic of Korea, the fibers and textiles business were affected by worsening market conditions. Sales for nonwoven fabric applications remained strong on the back of increased demand for masks due to the impact of COVID-19. The spread improved with the decline in raw materials prices.
In the performance chemicals business, polyester films performed strongly, but demand for battery separator films for lithium-ion secondary batteries were affected by the decline in market prices. Next, I would like to explain the consolidated business forecast for the fiscal year ending March 2022. Please turn to page 17. As for forecast for the fiscal year ending March 2022, we expect the global economy to continue recovering with large-scale additional economic measures implemented by the U.S. and with the rollout of coronavirus vaccines. However, there remains strong uncertainties, such as the restrictions on economic activities in response to resurgence in infections and confirmation of variants from various parts of the world. Therefore, the economy is expected to go through the normalization process at a slow pace.
Toray expects revenue of JPY 2,120 billion, core operating income of JPY 120 billion, and profit attributable to owners of parent of JPY 80 billion. In terms of annual dividend, the company anticipates to pay JPY 16 per share of common stock with a payout ratio of 32%. Page 18 shows the consolidated business forecast for the fiscal year ending March 2022 by segment. Page 19 shows a comparison of core operating income between the actual results for fiscal 2020 and the forecast for fiscal 2021 with breakdowns into segments. The factors behind the differences are shown on the right side of the table. Page 20 describes the trends in capital expenditures, depreciation and amortization, and R&D expenditures. Capital expenditures for fiscal March 2022 are expected to be JPY 125 billion, depreciation and amortization at JPY 121 billion, and R&D expenditures at JPY 67 billion.
Toray Group will implement measures to thoroughly reduce costs and improve efficiency related to capital investments and R&D by taking a selective approach. However, we will make the necessary capital investments and conduct R&D after carefully determining changes in demand due to the spread of COVID-19, aiming for sustainable growth in the future. This is all I have to explain about the business results for the fiscal year ending March 2021 and the business forecast for the fiscal year ending March 2022. Next, I would like to explain the progress of our medium-term management program, Project AP-G 2022, for the three years period from fiscal 2020 to fiscal 2022. Please look at page 22. First is the GR Project. Revenue from the green innovation businesses for fiscal 2020 was JPY 711.8 billion.
The recycling and the new energy business fields performed strongly, while the energy conservation field, including carbon fiber for aircraft, remained sluggish. Total revenue declined compared with the previous fiscal year. The line graph on the left shows the gross profit margin of the green innovation businesses, which is higher than the group average. On page 23, as an example of the new energy field, I would like to introduce some initiatives for the realization of a hydrogen society. Since 2016, Toray has been participating in the joint development of power-to-gas system to produce, store and use green hydrogen with renewable energy in collaboration with Yamanashi Prefecture, Tokyo Electric Power Company and others as a project sponsored by NEDO. In April 2021, Japan's first megawatt-plus solid polymer membrane, PEM-type electrolyzer demonstration machine using Toray's electrolyte membranes started operation.
In June, we plan to start delivering green hydrogen to plants and supermarkets in Yamanashi Prefecture before other areas in Japan. Our German subsidiary, Greenerity, is the world's number one supplier of PEM-type electrolysis CCMs. The second plant is currently under construction and is expected to start operation in 2022. Through the development and sales of hydrogen-related materials, Toray will continue to contribute to the development of hydrogen production, transportation, storage, and utilization technologies. On page 24, I would like to introduce some initiatives for the realization of a circular economy. In the area of gas separation membranes, we have developed a CO2 separation membrane with an all-carbon structure incorporating a porous carbon fiber in the support layer. This membrane has both excellent CO2 separation performance and high durability. In the future, we will accelerate our research and technological development for the implementation of this membrane.
In terms of material recycling, we have established a recycling system to collect and reuse used polyester films and developed the ECOUSE series of environmentally friendly PET films. We have prepared a production system with an annual production capacity of 2,500 tons and will start full-scale sales. Please turn to page 25. This is the LI Project. Revenue from Life Innovation business was JPY 255.6 billion. With the addition of the personal safety business field, revenue increased due to rise in shipments of nonwoven fabrics for applications including medical gowns and masks. The gross profit margin of the Life Innovation Business was also higher than the group average. Page 26 is about strengthening the management foundation. The first approach is strengthening financial structure by improving cash efficiency.
As for the reduction of working capital. The company introduced the Cash Conversion Cycle as an efficiency indicator for each business and conducted the 3C activity to shorten the cycle. The number of days in stock at the end of March 2021 was 81.6 days, a decrease of eight point four days from the previous fiscal year. The second approach is the business structure reform of low-growth and low-profitability businesses. In the fibers and textiles business, we are promoting structural reforms in the polyester cotton blend and textiles, the TC business, and domestic textile subsidiaries. In the carbon fiber composite material business, we reduced workforce and posted impairment losses at a U.S. subsidiary and conducted a large-scale operational adjustment to optimize inventory in fiscal 2020. We will strive to improve profitability by expanding sales in fields where demand is growing.
Page 27 indicates the business forecast for fiscal 2021 and the financial targets for fiscal 2022. Page 28 shows the sustainability targets. Together with our financial targets, we will strive to achieve these goals from the perspective of sustainability. I would like to conclude with an update of Toray Group's sustainability initiatives. Please turn to page 30. In July 2018, Toray Group announced the Toray Group Sustainability Vision, declaring its long-term determination to provide innovative technologies and advanced materials that help global issues, including climate change. In the vision, Toray Group declared its aim of a net-zero world where greenhouse gas emissions are completely offset by absorption, effectively cutting greenhouse gas emissions to zero by 2050. Please look at page 31. I would like to explain Toray Group's initiatives toward carbon neutrality by 2050.
Toray Group will contribute to the reduction of GHG emissions of society as a whole through the expansion of GR businesses, which the group has been conventionally working, such as businesses related to renewable energy, hydrogen, and materials for electrification, and will develop products that contribute to the absorption of GHG emissions, thereby contributing to the realization of carbon neutrality by 2050 for society as a whole. The expansion of these GR businesses will be returned to Toray Group as sustainable energy and raw materials to reduce GHG emissions. Toray Group will promote further reduction of GHG emissions through innovative processes and carbon recycling technologies, aiming to become carbon neutral in its business operations by 2050. Please turn to page 32. Toray Group has been proactively addressing global environmental issues for many years.
In the 1990s, we established the Global Environment Research Laboratories and the Global Environment Committee as a group-wide committee to clarify management's commitment to proactively addressing global environmental issues. In the 2000s, we formulated the Three-Year Environmental Plan, which includes targets for reducing GHG emissions. In the 2010s, we have been working to expand our GR business led by the Global Environment Business Strategy Planning Department, established as an organization under the direct control of the president. With regard to our governance system, we have been monitoring, evaluating, and managing global-scale issues, including climate change, through three group-wide committees: the CSR Committee, the Risk Management Committee, and the Safety, Health, and Environment Committee. In April 2021, we established a new sustainability committee chaired by myself, the president, to strengthen and accelerate the group's existing initiatives on climate change issues.
The Sustainability Committee deliberates on the yearly action plans, conducts overall management of execution issues and the status of initiatives for the GR project, LI project, and Challenge 30 Project, which manage the progress on KPIs for fiscal 2030 set in the Sustainability Vision. The committee is additionally responsible for overseeing and implementation of efforts to address climate change and discusses important policy matters and topics related to climate change and will promote Toray Group's initiatives to achieve sustainable growth and address climate change-related issues. Please look at page 33. In April 2021, we conducted a scenario analysis of the impact of climate change in line with the recommendations of the Task Force on Climate-related Financial Disclosures, the TCFD, and published the Toray Group TCFD Report 2021, which summarizes the group's response to climate change, focusing on the results of the analysis.
The analysis of Toray Group's opportunities and risks under the one point five degrees Celsius, two degrees Celsius, and four degrees Celsius scenarios showed that business opportunities are likely to increase with the progress of climate change measures and that although the carbon tax burdens and GHG emission restriction risks are significant, they can be reduced by implementing initiatives by achieving the GHG emissions targets outlined in the Sustainability Vision. Toray Group will continue to promote its long-term strategies to realize the Sustainability Vision while supplementing the content of the analysis in response to major social changes. This concludes my presentation. Thank you very much.